Residents voted against an amendment to the Anne Arundel County Charter (Question C).

If passed, the ballot issue would have raised the current dollar amount of bids requiring competitive procurement for most procurement contracts from $25,000 to $75,000.

Bids under $75,000 would not be required to go through full competitive bidding.

County commissioners approved a new purchasing manual to ensure consistency and avoid impropriety within the county’s contracting process.

A new hiring manager was brought in last year to overhaul a Purchasing Department troubled for years with allegations of political meddling.

Pursuant to the new manual, the Commissioners Court will still approve contracts handled by the Purchasing Department, but will be unable to override the department’s vendor choices. These changes are the latest in a series of improvements following the federal indictment of a county commissioner for rigging bids and accepting kickbacks in 2014.

Most of us have an idea of what lobbying is, but as states expand the definitions of lobbying, more activities may now trigger registration and reporting requirements. And, as states tighten political contribution rules, more and more contractors may run into problems because of pay-to-play laws. But in order to comply with the rules, you need to know the rules.

State and Federal Communications is taking part in two events over the next few weeks looking specifically at these issues. This fall our Compliance Client Specialist Nola Werren, Esq., will present “Compliance: Pay-to-Play and Procurement Lobbying Process” at events with the Public Affairs Council and WASRG, the Washington Area State Relations Group.

As an expert in the field, Nola will share her knowledge and experiences during a Public Affairs Council webinar and at the annual WASRG Symposium. Topics she will cover include the procurement process; lobbying requirements in the states, including best practices to ensure compliance; and pay-to-play laws. It is this area of pay-to-play, the nexus between making a contribution and the award of a contract, that can have far-reaching consequences for a business.

The Public Affairs Council’s webinar will be held on October 27^th and is entitled “Compliance: State-Level Laws and Recent Trends.” The WASRG Annual Symposium begins at noon on November 2^nd at Carmine’s at 425 7^th Street NW in Washington, DC.

Make sure you keep checking in with State and Federal Communications, Inc. We are your #1 resource on government relations compliance.

On August 18,  District of Columbia Mayor Muriel Bowser returned an unsigned bill to reform the District’s procurement processes signaling that it can become effective without her signature. On August 24, the legislation was sent to Congress for the 30-day congressional review period needed for enactment. The bill will make procedural changes and establish the Office of the Ombudsman for Contracting and Procurement.

As introduced, the bill had a pay-to-play provision that banned campaign contributors from bidding on contracts over $100,000 for a year after making a donation to a District candidate. The pay-to-play provision was defeated in a council vote and is not part of the final bill.

At any given time, more than 1,000 legislative bills, which can affect how you do business as a government affairs professional, are being discussed in federal, state, and local jurisdictions. These bills are summarized in State and Federal Communications’ digital encyclopedias for lobbying laws, political contributions, and procurement lobbying and can be found in the client portion of our website.

Summaries of major bills are also included in monthly email updates sent to all clients. The chart below shows the number of bills we are tracking in regard to lobbying laws, political contributions, and procurement lobbying.

The D.C. Council has preliminarily approved a bill that will bring more transparency and accountability to the government procurement process. Among other structural and procedural reforms, the measure establishes the Office of the Ombudsman for Contracting and Procurement.

The bill will need approval at a second reading before it is sent to the Mayor. A stricter reform measure that included a one year pay-to-play restriction failed to pass.

California Gov. Jerry Brown vetoed Assembly Bill 1200.

The bill would have revised the definition of lobbyist to include third-party consultants who work to influence governmental procurement.

The governor’s veto message said the bill is not necessary and cited the existence of numerous laws already regulating state procurement.

Assembly Bill 1200 has been sent to California Gov. Jerry Brown. The bill revises the definition of lobbyist to include individuals attempting to influence state governmental procurement of $250,000 or more.

Legislators passed the bill despite criticism of the measure from the California Fair Political Practices Commission.

If Brown signs the bill, the new rules will go into effect January 1, 2017.

Vendors and lobbyists are now required to disclose campaign contributions and affirm the disclosed contributions were made without the expectation of a governmental benefit in return. The late-2015 amendment requires disclosure of contributions to county officials and county-level candidates if made on or after April 1, 2016.

While the amendment aims at promoting greater transparency of the procurement process, some have argued contributions to political parties and noncandidate committees allow contributors to remain out of public view.

Lobbying

“Lobbyists and Corporations, Arm-in-Arm” by Rani Molla for Bloomberg.com

“What is Shadow Lobbying? How Influence Peddlers Shape Policy in the Dark” by Libby Watson for Sunlight Foundation

Campaign Finance

“PAC Donations from Elderly Donors Draw Scrutiny” by Fredreka Schouten and Christopher Schnaars for USA Today

“George Clooney Certainly Has Raised Some ‘Obscene’ Amounts of Campaign Money” by Justin Moyer for Washington Post

Mississippi: “No Restrictions on Legislators as Mississippi House Turns Back Campaign Cash Rules” by The Associated Press for Mississippi Business Journal

Montana: “Judge Weighs Whether Low Contribution Limits Are Justified” by Matt Volz (Associated Press) for The Missoulian

Ethics

District of Columbia: “DC Schools Chief Asked Contractor for $100K” by Ben Nuckols (Associated Press) for Idaho Statesman

Elections

“New York Blowout Gives Donald Trump Big Boost in GOP Race” by Jenna Johnson and Philip Rucker for Washington Post

“Strong Showing by Clinton in Defeat of Sanders in New York Primary” by Abby Phillip, John Wagner, and Anne Gearan for Washington Post

Procurement

“Governments Struggle to Root Out Fake Minority Contractors” by Mattie Quinn for Governing

Gov. Butch Otter signed a procurement bill into law late last month, overhauling how the state makes purchases.

House Bill 538 repeals existing statutes in favor of a completely new chapter, dubbed the State Procurement Act. The Act requires training for state officers and employees, including ethics training, and modernizes purchasing procedures.

The new law takes effect July 1, 2016.

A bill revising the definition of lobbyist to include individuals attempting to influence state governmental procurement of $250,000 or more is awaiting a final vote in the California Assembly. The bill would not apply to in-house lobbyists; only consultants paid more than $2,000 a month to influence procurement would be required to register.

If passed, the new rule becomes effective January 1, 2017.

New Jersey law requires every business receiving $50,000 in government contracts in a calendar year to file a Business Entity Annual Statement (Form BE) with the Election Law Enforcement Commission (ELEC) by March 30 of the following year. ELEC recently amended Form BE to require filers to certify the statements on the form as accurate, to acknowledge penalties for willfully filing a false statement, and to identify whether each contract was awarded pursuant to a fair and open process.

Businesses completing Form BE for 2015 can expect to spend more time filing, as determining if a contract was awarded pursuant to a fair and open process may not be as simple as it sounds. The term may be defined differently at the state, county, and municipal levels, and some long-term contracts to be listed on the form may have been awarded years ago.

The fair and open certification is just another addition to New Jersey’s notoriously complex pay-to-play rules. Because certain laws apply only to contracts not awarded through a fair and open process, identifying a contract awarded through any other process will likely highlight the contract for regulatory agencies.

Although the changes will certainly make filing more complicated, ELEC has yet to issue guidance on the new requirements.

The Frederick County, MD Council has passed a new ordinance regarding county contracts and the size of the Frederick County Ethics Commission. The ordinance prohibits elected officials and certain family members for securing county government contracts.

Additionally, the ordinance increases the size of the Ethics Commission from five to seven members.